Vijayakrishnan Krishnamurthy, Kara Maruszak, John Mulka
University of Toledo
BUAD 6600
July 4, 2014
Executive Summary Sport Obermeyer, Ltd. was founded by Klaus Obermeyer to provide U.S. skiers with the same protective and stylish clothing and equipment available in Germany. With a history of innovative new products and leading styles, Sport Obermeyer developed into a prominent competitor in the U.S. skiwear market selling its products in U.S. department stores and specialty ski shops. Based out of its Aspen, Colorado headquarters, Obermeyer currently offers a broad line of fashion ski apparel, including parkas, vests, ski suits, shells, ski pants, sweaters, turtlenecks, and accessories. Although Sport Obermeyer has a global supply network, most production is done in Hong Kong and China by its partner, Obersport Limited. Established in 1985 as a joint venture between Klaus Obermeyer and Raymond Tse, Obersport is responsible for fabric and component sourcing for Sport Obermeyer’s entire production in the Far East. The materials are then cut or sewn either in Raymond Tse’s own “Alpine” factories or by independent subcontractors. Sport Obermeyer’s orders represent about 80 percent of Alpine’s annual production volume.
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1. Forecasting is arguably the most difficult and also most important part of the supply chain management process. Common factors used to make future sales forecasts include historical sales data, data from competitors of similar products, and estimation of future demand and economic conditions, and statistical averages and variations from this data collected. Forecasts are almost never 100% accurate, but supply chain managers must do their best to make as accurate projections as possible in order to